Buying a Home? Don’t Forget About Home Insurance

If buying a home is on your radar, you’re probably watching mortgage rates, home prices, and monthly payments closely. But there’s another cost you’ll want to factor into the equation early on: homeowners insurance.

Insurance has always been part of the cost of owning a home, but over the past few years, premiums have become a bigger expense for many homeowners. When affordability is already top of mind, that can feel like one more thing to worry about.

The good news is that while insurance costs are still increasing, the rate of those increases has started to slow.

Home Insurance Costs Have Increased

If you’ve heard friends or family mention that their homeowners insurance has gone up, you’re not alone.

According to the Pew Research Center, 71% of homeowners say their insurance costs have increased over the past few years.

That’s important to keep in mind when you’re creating your homebuying budget. Your insurance premium is another monthly housing expense, along with your mortgage, property taxes, utilities, and maintenance.

Getting an insurance quote early in the buying process can give you a much clearer picture of what your total monthly payment could look like.

Insurance Costs Can Vary A LOT

One thing buyers should know is that there isn’t a one-size-fits-all price for homeowners insurance.

Your premium can depend on where the home is located, the age and condition of the property, the roof, heating system, replacement cost, your coverage options, and other factors.

That means two homes with similar price tags can have very different insurance costs.

This is one reason I always recommend looking beyond just the purchase price when you’re deciding whether a home fits your budget.

A Few Ways You May Be Able to Save

You may not be able to control every factor that affects your insurance premium, but there are some things worth asking about.

Shop around. Get quotes from more than one insurance company so you can compare coverage and pricing.

Ask about bundling. Combining your home and auto insurance may qualify you for a discount.

Look for available discounts. There may be discounts based on your home’s features, security systems, claims history, or other factors.

Point out recent upgrades. A newer roof, updated electrical systems, storm-resistant windows, or other improvements may affect your premium.

Take care of your credit. In some states, your credit history can play a role in determining your insurance rate.

Most importantly, get an insurance quote before you make an offer whenever possible.

It’s much better to know what you’re likely to pay upfront than to discover later that the insurance cost changes the numbers you were comfortable with.

Make Insurance Part of Your Homebuying Plan

Buying a home is a big financial decision, and the purchase price is only one piece of the puzzle.

The more you know about your potential monthly expenses before you make an offer, the more confident you can feel about your decision.

My advice? Start the conversation with an insurance professional early, get a quote for the homes you’re seriously considering, and make sure the numbers work for your budget.

Thinking about buying a home? Let’s talk about the full picture, not just the list price. I’m happy to help you understand the costs to consider and connect you with trusted local professionals who can help you along the way.

📩 Have questions about buying a home or figuring out what you can comfortably afford? Send me a message. Let’s start the conversation.